Egypt is pinning its hopes for a return to the international capital markets on Islamic bonds. It is likely to be successful, provided it can hold parliamentary elections and resolve domestic legal wrangling over how to structure the bonds.
Struggling to narrow a big budget deficit and boost foreign currency reserves that are at critically low levels, President Mohamed Mursi's government last week approved a draft law that would allow the state to issue sukuk for the first time. With its credit rating repeatedly downgraded to junk status by international rating agencies over the past year, and its economy undermined by political instability, Egypt might seem an unlikely borrower...............................................Full Article: Source